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Third party research

Fiskars: Leverage still above the target; slightly credit-negative - Nordea

Fiskars

This is a third party research report and does not necessarily reflect our views or values

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Fiskars’ net sales continued the decreasing trend y/y in both Business Areas due to low consumer confidence and retailer customers’ focus on inventory management. Comparable EBIT increased slightly as the improved gross margin and lower SG&A costs were able to mitigate the impact of lower sales volumes. Profitability in Vita decreased slightly but increased in BA Fiskars due to cost management. Changes in working capital caused that the free cash flow weakened y/y, which caused that the leverage is back at the starting point, still slightly above the targeted 2.5x at 2.6x (2.6x at the end of 2023). Market weakness has caused that Fiskars didn’t delever its balance sheet as much as we hoped for during the past 12 months. To tackle this, Fiskars initiated efficiency program to BA Vita in order to target EUR 10m annual cost savings, causing one-offs of EUR 4m.
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